At 2/13/13 12:00 PM, LemonCrush wrote:
Raise prices of goods and services. Gas, food and commodity prices are already high enough. With so many unemployed, and not having money, we should be trying to make food, etc cheaper, not more expensive.
Yeah, that will happen. Unless you're comfortable with the idea of people who create these products not being able to support themselves (and therefore must rely on welfare - which is costing our government bundles of money too, by the way, or the people die off, which is not sustainable, which affects you even if you don't care about the people) then there really aren't too many options, either. Minimum wage is supposed to reflect a bare minimum in order to live off of (or at least make it worth the gas/bus fare to get to work, in the first place), which for the past few years it hasn't been. Periodically minimum wage needs to be increased to reflect inflation/rise in the cost of living, if you want it to make sense anymore.
Makes certain types of employment illegal, because it prevents potential employees from negotiating a reasonable price with an employer. Which stilts everything, if you're an actual job creator (not a large conglomerate who can just absorb costs and cut quality, and then pass legislation for force people into buying your shit anyway), like a small business, high minimum wage FUCKS you. Let's say Mr. Harrison owns a shop making clocks. The clock business is doing quite well, and he needs more guys to help him make clocks due to increased demand. So, a kid comes in, with little experience and says he wants a job. It is law that this kid be payed $9. Which, maybe too much for Mr. Harrison to afford. So, he either makes the kid work part-time, and can't make as many clocks, hire him full time, and put all of his money into paying the new kid instead of materials or possible expansion. Either way, he'll have to raise the prices of his clocks to offset how much he's giving the kid. OR he could just not hire the kid at all, and his business won't expand anyway.
It's very easy to argue from one side - how about looking at the other? The clock maker sets up a job opening, and the only people who try to take him up on it are people who only need the money for a little spare cash, or just want to pass the time. Good for the clock maker, but for the rest of the people that really need a job in order to survive that clock making job is worthless, as it doesn't cover their basic needs. They need to turn it down and look for more substantive work, or live off of welfare (which would give them more money and support than a lower paying minimum wage job, to be honest - why would you work less than minimum wage at all?).
These jobs don't do anything to stimulate the economy, as the people taking the jobs can't afford to spend the money on anything else other than the bare essentials. That clock maker needs customers in order to stay afloat - who are these customers going to be? Unless he just so happens to be a very lucky clock maker and attracts the very rich, he's going to need people who can afford to purchase something outside of their bare essentials every once in a while. Raising minimum wage helps him out on that front.
It also contributes to the illegal immigration problem because of the above. Employers seek illegals because they don't have to pay them minimum wage.
True. I doubt it would exacerbate the problem any more than the current state, though - people who are going to avoid minimum wage will keep doing it regardless, while people willing to pay it will probably keep paying it, regardless, in order to keep their name clear. If you want to fix the immigration problem then it's better to focus on the immigration problem (which is a problem, and I'm not sure I'm on Obama's side with that one) - lowering minimum wage (or keeping it too low) to reduce the immigration problem is like ripping a hole in your gut in order to minimize weight gain. It might help avert that problem, but at what cost?
I do not understand why it's mandatory for employers. The federal govt should have no say in the employee/employer relationship. You mean to tell me, the government has the power, to keep me from naming my price to work? What if I want a job really bad, but potential employers can't pay $9. You're telling me it's ILLEGAL for me to say "Hey man, times are tough. I'll work for $6 instead." What the fuck is that?
It's probably perfectly legal to say that - it's not illegal for the worker to willingly donate part of his paycheck to the company, so you could make a workaround, if you really wanted to. If you can pay your bills, eat, travel and manage to make a meaningful contribution to the economy at less than a thousand dollars a month without benefits (assuming you're working 40 hour work weeks, which is a pretty big assumption nowadays), then go for it. I sure as shit can't, and I doubt most people who live alone couldn't do so, either, but if you can, power to you.
It's illegal for a company to say "Hey, we need workers, but we're going to pay you less than you need to survive, and there's nothing you can do about it.". That's very different than what you're proposing, as it protects the well being of those that work for a company. Just because you would be able to survive on 6$/hr doesn't mean most others could - raising minimum wage gives those that are employed a fighting chance to get back on their feet.
Look, raising minimum wage hurts businesses that rely on paying it's workers the lowest amount possible - it will drive costs up for everything accordingly. The reality, though, is that either option is going to fuck the same people over in one way or another. Would you like to increase minimum wage, hurting small business, or keep it low and have things like welfare and unemployment taxes eat the small business away internally (currently welfare takes about 35% away from the employee as well as another 35% of the employee's paycheck away from the employer, if memory serves me right)? Or the third option, which is to cut welfare drastically, which would lead to the starvation of the people that rely on it... which in turn would leave companies without the low wage work force in order to keep their prices low, anyway (leading to the raise in prices of food/gas/etc. due to the need to pay higher wages to attract workers again)?
Reality is a bitch - prices on things must go up in one way or another in order to survive as a state, as a country, and likely as a planet.